Long-term policy needed for auto industry growth

LAHORE: Indus Motor Company (IMC) hailed the statement of the secretary ministry of industries about the need to look at the impact of imported vehicles on the local auto industry.

While commenting on the meeting of the public accounts committee (PAC), the IMC spokesman emphasised that in order to achieve large volumes and stable growth in the industry, it is extremely important for the government to support the auto industry with long-term policies.

However, he rejected the claim that the meeting had taken place for the PAC and other stakeholders to criticise the local auto sector for malpractices in the auto industry.

In fact, the spokesman said that the meeting was held in a very cordial environment and all the stakeholders vowed to work together to formulate a long-term policy for achieving volumetric growth for the economic benefit of the country.

“The issue of malpractices in the industry was raised in the meeting, but the auto industry representatives instantly clarified it. Thus, the PAC and other stakeholders were satisfied with their arguments,” he added.

In view of the disparity between the sales and capacity figures, the spokesman said, “To keep the customer satisfied, which is the top-most priority of IMC, it has gone an extra mile by working extra hours and improving production that has resulted in timely delivery of orders.”

During the meeting, the IMC representatives had welcomed the time taken out by the PAC members to hold such an important meeting with the auto sector. The meeting helped to assure all the stakeholders that the government was a facilitator and does not intend to harm the flourishing auto industry or disturb the equilibrium of employment opportunities that it generates for the people of Pakistan.

The IMC hailed the suggestion of the subcommittee’s chairman, who said that the auto sector should work together with the Ministries of Industries and Commerce and plan to deliver highest value proposition, keeping the customer’s interest in mind.

In addition, the chairman acknowledged that the PAC held the meeting to alleviate consumers’ problems by providing the auto industry with recommendations for formulating an effective policy for future. Moreover, he also recognised that there are vested interests among the legislators, but there is a need for the government to be fair in its policies to deliver the best value to consumers.

The IMC had given assurance to the chairman that the government needs to work with the auto industry to abolish the phenomenon of ‘own money’. In this regard, a working paper is to be devised in consultation with the auto industry to fight this phenomenon. A failure on this account would be a failure of both the government and the industry.

“We welcome the suggestions of the committee that all the industry’s stakeholders need to work for providing best value, good and fair competition, and fight mafias plaguing the industry,” the IMC spokesperson added.

The meeting was chaired by Hamid Yar Hiraj, while production minister Riaz Hussain Pirzada was also present. Representatives from the Ministry of Industries included secretary MoI Shafqat Naghmi, joint secretary Abdul Sattar Khokhar, chief executive of the Engineering Development Board, Aitizaz Niazi, and his team.